TLDR: Tenecent is the next king of entertainment
by Backchannel (these highlights provided for you by Annotote)
“ Tencent is using its social networks, WeChat and QQ, and video games to build an entertainment juggernaut.
“ the largest gaming company in the world
“ The company has found a symbiotic way to monetize both [messaging & gaming], through the astonishingly lucrative sales of virtual goods such as avatars, skins, and other digital artifacts for personalizing your online presence … that get distributed through its massive messaging platforms.
“ Just as Disney used the characters from its signature films to sell merchandise, music, spin-off shows, games, and tickets to its theme parks, Tencent is using its video game assets to fuel a books, comics, music and film empire.
“ [In 2008] Tencent switched from developing its own games, which was never its strength, to licensing already successful, more immersive games and using its massive scale to distribute them … in China.
“ Tencent hasn’t relied heavily on advertising to become profitable … online advertising accounted for 17% of Tencent’s annual revenue, versus … online games and virtual goods [at] 78% of the company’s $15.8B in annual income.
“ [Tenecent has a] “pan entertainment” strategy … to leverage its intellectual property (IP), mainly from games, across multiple kinds of entertainment: live-action and animated films, books, music, and more.
“ These are all experiments leading in one direction: movies. Tencent is jockeying with Alibaba Pictures and Wanda Group for its share of China’s projected $10.4 billion in box-office receipts